Should Flsa Be Updated

According to (Wright, 2003), history has revealed to us the challenges of the American worker in obtaining adequate or fair pay for work accomplished, being paid for actual hours worked, receiving a higher pay rate for hours worked during a fixed work week, and the abuse of children in the workforce has been difficult due to employers’ labor policies and ability for courts to hold or desire to hold employers accountable. As per (Kantor, 1958), The Fair Labor Standards Act of 1938 was passed by congress on 24 October, 1938. The laws improved the American Worker’s standard of living by establishing a minimum wage, overtime compensation, and placed restrictions on child labor pay and working conditions. Since 24 October, 1938, there have been numerous amendments to the Fair Labor Standards Act of 1938 which have improved the worker’s rights within the United States.

However, today’s workforce is changing and mindset for business owners to create wealth and increase company’s value has not diminished. As stated clearly and concisely by (Maxwell S. Kennerly, 2010), “This management principle, also known under value based management, states that management should first and foremost consider the interests of shareholders in its business actions. Although the legal premise of a publicly traded company is that the executives are obligated to maximize the company's profit”. Based on company’s objectives, there is a need to review and update the Fair Labor Standard Act (FLSA) and determine if changes to the current laws and regulations need to be updated.

This review of The Fair Labor Standard Act (FLSA), which is administered and managed by the Wage and Hour Division (WHD), will look at current minimum wage rates and adjustments, hours worked, overtime pay, and groups covered by laws and regulations. Research and analysis of the current Fair Labor Standard Act will provide the basis for the recommendation to whether or not additional updates to The Fair Labor...